OFS - KBR’s energy business will exit EPC contracts to calm investors - July 2020KBR will slash its energy business, leaving lump-sum engineering, procurement and construction projects as it focuses on more stable government contracts. The announcement would remove a leading player in LNG projects. “We are exiting the blue-collar construction and lump sum EPC areas within our energy business, and this includes lump sum EPC as it relates to LNG,” CEO Stuart Bradie said during a June 16 investor presentation. Specifics on how KBR intends to accomplish this will wait...
Jul 01, 2020
CM - Startup Sixth Creek Energy will seek $250MM-plus investments - June 2020Denver-based Sixth Creek Energy, which just formed this quarter, said it will pursue the addition of institutional investors to its capital base if the size of an opportunity dictates. The company disclosed in an investor presentation that initial capital commitments from management, friends and family will total around $50 million. The company is working with Houston-based investment and merchant bank Rivington Holdings. Sixth Creek said its strategy was to acquire low-risk PDP...
Jun 26, 2020
CM - Mirage Energy borrows $4B to build Mexican gas & crude projects June 2020Mirage Energy Corp. and Northern Hemisphere Logistics Inc. signed a $4 billion debt facility with the family office of Bluebell International LLC to develop natural gas pipelines, underground natural gas storage and the Isthmus Corridor project in Mexico. Under terms of the loan, Bluebell, an Irvine, California-based provider of construction loans, will receive 75% of the projects’ equity. Mirage will use the funds to develop the Burgos hub storage and natural gas pipeline consisting of...
Jun 26, 2020
CM - SPAC Tortoise shedding midstream shell for powertrain maker - June 2020Special-purpose acquisition company Tortoise Acquisition Corp., which intended to buy a midstream or water company when it went public in March 2019, has gone in a different direction. The blank-check company announced an agreement to purchase Hyliion Inc., a Pittsburgh-based maker of Class 8 electric powertrains for long-haul trucks. The deal places the combined companies’ value at over $1.5 billion, assuming no Tortoise public shareholders exercise their redemption rights. Upon completion of...
Jun 26, 2020
CM - People & Companies - June 26, 2020Carbon Energy Corp. named Erich William Kirsch principal financial officer and principal accounting officer, effective June 11. Kirsch has served as SVP, finance and accounting since August 2019. Clean Energy Fuels Corp. elected Parker A. Weil director. Weil is vice chairman of investment banking at Cowen & Co. CONSOL Energy Inc. appointed Mitesh Thakkar CFO after his having served on an interim basis since Jan. 1. Mark Maki resigned from the board of DCP Midstream...
Jun 26, 2020
CM - Amplify’s credit terms stricter in ‘challenging’ redetermination - June 2020Amplify Energy Corp. said its operating subsidiary entered into a borrowing base redetermination that reduced availability to $285 million from $450 million, effective June 1. There will be monthly reductions of $5 million thereafter until the borrowing base is reduced to $260 million. Lenders increased the amount of first-priority liens on all assets to at least 90% from 85%, and decreased permitted cash and equivalents to $25 million from $30 million. The limit for transaction-related...
Jun 25, 2020
PS - Bruin completes six-well pad, halts D&C operations - June 2020In McKenzie County, North Dakota, Bruin E&P Partners completed the FB Bonita #152-93-9B-10-9T targeting the first bench of the Three Forks. The well was completed with a 10,038-ft effective lateral fracked with 9.9 MMlb of proppant (987 lb/ft). During a 24- hour test, it flowed 4,796 boe/d (89% oil), or 478 boe/d per 1,000 lateral ft, on a 50/64-inch choke at 2,250 psi FCP, which places it in the company’s top quartile for IP24s. Five other wells were completed on the same pad during Q1....
Jun 24, 2020
PS - People & Companies - June 24, 2020ExxonMobil Upstream Business Development Co. president Steve Greenlee will retire July 1 after more than 38 years with the company. Linda DuCharme, president of ExxonMobil Upstream Integrated Solutions Co., will replace him, while also being elected VP of Exxon Mobil Corp. and retaining her current role. Falcon Minerals added Claire Harvey and Daniel Herz to its board as Class III directors. Harvey is the CEO of non-op E&P firm Gryphon Oil & Gas. Herz is president and CEO of Falcon....
Jun 24, 2020
ES - Diversified Gas & Oil Highlights - June 23, 2020Diversified Gas & Oil completed acquisitions of conventional Appalachian assets from EQT Corp. and Carbon Energy in late May. The two deals boosted Birmingham, Alabama-based Diversified’s net production by 20%, or 109 MMcfe/d, over its 2019 average. It will also increase its 12-month EBITDA starting June 1 by an estimated $61-65...
Jun 23, 2020
IS - Projects advance, assets hit the market amid volatility - June 2020Although the oil and gas industry is still nowhere near where it was at the beginning of the year, there are signs that companies are starting to take cautious steps forward as pandemic restrictions ease and oil prices begin to recover. Senex Energy announced it completed its $280 million Surat gas project with 30 fewer wells than it originally thought it would need (PG.1). Canada loosened restrictions on exploratory drilling off Newfoundland (PG.1), where Equinor reportedly made a discovery in...
Jun 22, 2020
IS - Aker Energy working on phased approach to Pecan development - June 2020Aker Energy said it is actively pursuing a development concept where it can begin work on Phase 1 development of the Pecan field off Ghana. The company delayed the project’s FID in March because of the oil price crash and is conducting conceptual studies to confirm the feasibility of a phased development, which along with a redeployed FPSO is expected to substantially reduce costs. The company originally planned to develop Pecan and tie in other area resources at the same time, using...
Jun 22, 2020
IS - TC completes stake sale of Coastal GasLink, accesses financing - June 2020TC Energy closed the sale of a 65% stake in its Coastal GasLink pipeline project in British Columbia to private equity group KKR and Alberta Investment Management Corp. on May 27. The 416-mile project will connect the Dawson Creek area with the LNG Canada liquefaction and export facility being built in Kitimat and provide a contemplated initial capacity of 2.1 Bcf/d. The pipeline is fully permitted and approved by regulators, and construction is underway. Shell backed LNG Canada is expected to...
Jun 22, 2020
CM - Upstream Briefs - June 26, 2020Northern Oil & Gas Inc. will ask its shareholders to vote sometime in Q3 to reverse split its NYSE-traded common shares. It is considering ratios ranging from 1:6 to 1:10. A change in authorized shares will accompany the reverse split. Northern’s 430 million shares outstanding have been trading mainly in the $0.60- $1.00 range in Q2. Texas Pacific Land Trust is moving forward with plans to reorganize into a Delaware corporation and has filed an initial draft registration statement...
Jun 26, 2020
CM - News Briefs - June 26, 2020Bonanza Creek Energy Inc. and lenders led by JP Morgan reduced the company’s borrowing base to $260 million from $375 million and the elected loan limit to $260 million from $350 million. The company will also have a weekly mandatory prepayment requirement if its consolidated cash balance is over $35 million. Also, the maximum permitted net leverage ratio was reduced to 3.5x from 4.0x, and to 2.75x from 3.25x in cases of restricted payments, investments or redemptions. Cimarex Energy...
Jun 26, 2020